If you’re struggling with unsecured debts of £5k or more, it’s one of the three main potential solutions that could help ease the strain. If a Debt Arrangement Scheme (DAS) isn’t an affordable option for you within a reasonable timescale, or if Sequestration would be too disruptive, then a Trust Deed could be the best route to financial freedom.

How it works

A Trust Deed is a legally-binding contract between you and your lenders which allows you to write off a significant portion of your unsecured debts and repay only what you can afford.

Trust deed exampleIf our Debt Test indicates you are likely to qualify, you will be assigned to one of our expert Debt Advisers who’ll review your circumstances in more detail. Your Adviser will work out what you can afford to repay each month, bearing in mind your mortgage, car and living expenses, and will identify if a Trust Deed is indeed the best option for you. If it is, and you choose to proceed, you will be contacted by our insolvency practitioner, since it’s a legal requirement that only an Insolvency Practitioner can set up and administer a Trust Deed. Your Insolvency Practitioner acts as your Trustee and will present to your lenders whatever amount you can afford to repay. Your Trustee will negotiate with your lenders to accept those terms. As long as the majority accept, your Trust Deed will become ‘protected’. And once ‘protected’ your lenders won’t be able to take any further action against you as long as you keep up with your monthly payments. Interest and charges will be frozen and once all payments are completed your remaining debts will simply be written off.


  • Write off a significant portion of your unsecured debt (these are things like personal loans, bank overdrafts, payday loans, credit cards)
  • All interest and charges will be frozen
  • One vastly reduced monthly payment
  • Be completely debt-free by the end of the Trust Deed, typically in 48 months
  • No more calls or letters or legal action from your lenders
  • Keep your home although conditions may apply
  • Not as potentially disruptive as Sequestration (bankruptcy)
  • Quick to set up, typically 5 to 6 weeks


  • Secured debts like mortgage and hire purchase repayments can’t be included.
  • All assets and liabilities have to be declared.
  • If you’re a homeowner, you may be required to release any equity in it to help repay your lenders (or if you can’t release equity you may be required to make repayments for longer)
  • You need to stick carefully to a budget for the duration of your Trust Deed and your income and expenditure will be reviewed regularly during the Trust Deed
  • Your credit rating will be affected and will remain on your credit history for six years
  • Certain occupations require prior approval
  • You will not be allowed further credit while on a Trust Deed.
  • If you fail to keep up the repayments of your Trust Deed then your assets may be at risk and sequestration proceedings could start against you.

Is it for you?

If you’re resident in Scotland and have unsecured debts of more than £5k then the advantages of a Trust Deed may be very attractive. However it’s important you receive expert advice and a detailed review of your options before applying for one. Take our simple Debt Test to establish if you’re likely to qualify and connect with one of our professional Debt Advisers committed to identifying the right solution to helping you out of debt. Your enquiry will be handled professionally and in confidence.